SilverCrest Mines Inc SVLC

Sandstorm UG option evaluation. Discussion welcome

[shermandrock]

Sandstorm has option to purchase 20% of the UG gold for 20% of mine expansion costs (pro rata gold).

UG Au ozs = 198,170 [ 40K ozs for ease of calculation]

Sandstorm % = 20%

Expansion costs $87M

Pro-rata gold @$1,450 Au & $25 Ag = 46%

$87M X 46% = $40M

$40M X 20% = $8M

$8M / 40K ozs = $200 per ounce

Option purchase cost per ounce = $450

Total Sandstorm acauisition cost per oz = $650  [$200 +450]

Yep, looks like Sandstorm will be picking up the UG option.

[KevinF2848]

I agree.  I am a shareholder in both companies.  I am surprised that Sandstorm has not announced it yet.  Maybe they are waiting until closer to the end of the year, or maybe when their stock shows some momentum.  Sandstorm's chart looks like they might bump up a bit this week and finally get above the 50 day MA.  As a shareholder of Silvercrest, I hope that Sandstorm